Canada's Viropro in potential $27M deal

Montreal, Canada-based Viropro has signed a memorandum of understanding with BioChallenge, a privately-held pharmaceutical company based in Tunis, Tunisia. Viropro's chief executive, Jean-Marie Dupuy, commented: "this binding MoU aims at working jointly at the development and the production of several therapeutic proteins. This first MoU is in accordance with our model built on recurring sales revenues and short- and long-term profitability."

This deal would bring Viropro its first revenues, based on specific objectives consisting of fixed licensing fees, development milestones, technology transfer and royalties varying from 5% to 10% of net sales depending on the total volume. Revenues generated from the technology transfer of these first three proteins to Viropro should reach about $10.5 million during this four-year period, to which royalties estimated at $17.0 million will be added after year four over a 10-year period.

After completion of the feasibility study by the end of July 2006, the development and technology transfer of the first three therapeutic proteins will be carried out over a four-year period. The first proteins to be brought to market starting in 2009 will be erythropoietin, interferon beta and growth factors like G-CSF used to treat diseases such as cancer and multiple sclerosis. This "announcement is a turning point for Viropro as we are expanding our horizons in terms of revenue growth, the building out of a worldwide network as exemplified by this important new agreement," said Mr Dupuy.